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Is a Beat in the Cards for FirstEnergy (FE) in Q2 Earnings?

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FirstEnergy Corp. (FE - Free Report) is scheduled to release second-quarter 2019 results on July 23, after market close. In the last four quarters, this utility player delivered an average positive earnings surprise of 5.09%.

What Does the Zacks Model Say?

Our proven model shows that FirstEnergy is likely to beat estimates as it has the right combination of two key ingredients. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You can see the complete list of today’s Zacks #1 Rank stocks here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

FirstEnergy Corporation Price and EPS Surprise

FirstEnergy Corporation Price and EPS Surprise

FirstEnergy Corporation price-eps-surprise | FirstEnergy Corporation Quote

Earnings ESP: The company has Earnings ESP of +0.82%. 

Zacks Rank: FirstEnergy currently carries a Zacks Rank #3. The combination of a Zacks Rank #3 and +0.82% ESP makes us confident of an earnings beat in the upcoming quarterly results.

We caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is witnessing negative estimate revisions. 

Here's What Could Drive Results

FirstEnergy’s focuses onEnergizing the Future plan to improve the reliability, resiliency and security. Energizing the Future is expected to reduce transmission outages stemming from equipment failures. The company plans to invest $1.2 billion on this program in 2019. On Mar 22, the company received final order related toMaryland Potomac Edison rate case.  We expect this to make a positive impact on second-quarter results.

The Zacks Consensus Estimate for second-quarter earnings is pegged at 61 cents, which has been unchanged in the past 60 days. FirstEnergy projects second-quarter 2019 earnings in the range of 55-65 cents. The midpoint of the guidance is 60 cents, which is a tad lower than the Zacks Consensus Estimate.

Stocks to Consider

In addition to FirstEnergy, investors can consider other players from the same industry , which also have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Entergy Corporation (ETR - Free Report) has an Earnings ESP of +4.44% and a Zacks Rank #2. The company is expected to release second-quarter 2019 results on Jul 31.

NextEra Energy, Inc (NEE - Free Report) has an Earnings ESP of +1.80% and a Zacks Rank #3. The company is likely to report second-quarter 2019 results on Jul 24.

The Southern Company (SO - Free Report) has an Earnings ESP of +3.64% and a Zacks Rank #3. The company is expected to release second-quarter 2019 results on Jul 31.

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